First half results were in line with expectations. The main growth driver in the future is the commercial development pipeline, in Credit Suisse’s view.
This includes $3.1bn in office development under construction that is substantially pre-committed. There is also a $1.2bn industrial pipeline.
The broker suggests management has picked the cycle well and should be commended for its disciplined growth strategy.
Neutral rating maintained. Target is raised to $3.26 from $3.11.
Sector: Real Estate.
Target price is $3.26.Current Price is $3.33. Difference: ($0.07) – (brackets indicate current price is over target). If MGR meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
